Wednesday, February 4, 2009

Obama puts an end to executive excess

Any chance of something similar here in the UK......?

WASHINGTON, Feb 3 US President Barack Obama will set a $500,000 annual compensation cap on Wednesday for executives at companies getting taxpayer bailouts as part of a wider process to clamp down on excessive corporate pay.

An administration official said the new rules would require banks and other companies that get government funds in the future to abide by the new cap going forward, with any additional compensation being limited to restricted stock that does not vest until government funds are paid back.

Companies that have previously received bailout money would have to agree to stricter oversight and prove that they have followed already established restrictions on executive compensation.

Its just another Obama con, the 500,000 limit is for new salary agreements, it does not effect agreements already in placeAlso bankers can be paid in share options - so they will make out like bandits when all the coming inflations hits the economy